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NJ Transit quietly writes big check to family of reputed mobster

Updated December 5, 2017 at 12:45 PM;Posted December 5, 2017 at 12:43 PM

A partially completed overpass to carry Tonnelle Avenue in North Bergen is seen over the entrance to the ARC Tunnel, in September 2010, shortly before the project was canceled in October 2010. (Jerry McCrea | The Star-Ledger)

Expenses from a tunnel project that was canceled seven years ago continue to haunt NJ Transit, which this year wrote a $6.13 million check to the family of a reputed mobster for land the agency wanted for the doomed project.

The settlement ended a seven year battle with the family of longtime North Jersey garbage magnate and Township of Washington resident Carmine "Papa Smurf" Franco over the value of a triangular piece of land that NJ Transit condemned for the ARC tunnel project canceled by Gov. Chris Christie in October 2010.

NJ Transit's board approved the settlement with M & C Franco & Co. in August, but officials declined to reveal the price tag until asked about it last week.

The 1.89-acre tract on the border of Hoboken and Weehawken could still be used for Amtrak's proposed Gateway Tunnel project as an access point for tunnel boring equipment, officials said.

NJ Transit and the Franco family fought in court over the value of the property since 2010. In 2012, a Hudson County jury valued the land at $8.15 million. However, a state appellate court gave NJ Transit a victory in 2016 after the agency appealed the verdict.

The three-judge-panel ruled that the higher value wasn't appropriate because it depended on the landowner winning approvals from two municipalities to change zoning to allow residential development on the property.